Quarterly report pursuant to Section 13 or 15(d)

Note 8 - Notes Payable

Note 8 - Notes Payable

3 Months Ended

Mar. 31, 2020

8 .	Notes Payable

IPFS Corporation

November 2018,

we prepaid

$393,000

of insurance premiums through the issuance of a note payable to IPFS Corporation (“IPFS”) with an interest rate of

5.1%.

The note was payable in

ten

monthly installments of

$40,000,

with the final payment made in

August 2019.

Interest expense related to the IPFS note payable totaled

$4,000

during the

three

-month period ended

March 31, 2019.

First Insurance Funding

November 2019,

we prepaid

$349,000

of insurance premiums through the issuance of a note payable to First Insurance Funding (“FIF”) with an interest rate of

5.0%.

The note is payable in

eight

monthly installments of

$44,000,

with the final payment due in

July 2020.

Interest expense related to the FIF note payable totaled

$3,000

during the

three

-month period ended

March 31, 2020.

The balance of the FIF note was approximately

$176,000

and

$306,000

as of

March 31, 2020

and

December 31, 2019,

respectively, and was included in notes payable, current in the consolidated balance sheets.

Summary

During the

three

-month periods ended

March

31,

2020

and

2019,

we recorded interest expense of

$3,000

and

$4,000,

respectively, related to our notes payable.